Oct 14, 2010 at 1211 hrs IST
Chennai: With more MNCs setting shops in the country, the cost accountants have an indispensable role in issues like auditing of ‘transfer pricing’, said M Gopalakrishnan, national vice-president, Institute of Cost and Works Accountants of India (ICWAI), while talking to FE.about the broadening career horizons for ICWAIs in the country.

Cost accounting as a profession is primarily involved in audit of cost and indirect taxes like VAT, service, sales, excise, customs, etc. The advent of MNC firms sourcing products and services in different markets migrating to India for cost arbitrage have to hire ICWAI graduates to handle ‘transfer pricing’ issues, he added. Cost accountants need to audit the transferred pricing of products and services in order to avoid ambiguities and arrive at tax liabilities incurred by moving in MNCs, he pointed out.

“Now, ICWAs are getting salary package up to Rs 11 lakh per annum majorly hired by foreign firms here. There are Indian corporate giants like Reliance equally offering such salaries to the ICWA pass outs,” he said. Other than ‘transfer pricing’, the nod to appointment of ICWAs as CFOs of companies in the new Companies Bill by ministry of corporate affairs (MCA) would be a blessing in disguise to 45,000 working ICWAs and 3 lakh students who are pursuing the course all over India, he said.

“There are two Bills pending before the select committee of Rajya Sabha. The one on rechristening ICWAI as ICMAI viz, Institute of Cost and Management Accountants of India under the Cost &Works Accountant Amendment Bill 2010 and other the new Companies Bill envisaging appointment of ICWAI holders as chief financial officers in companies. The passing of these two Acts would lend further weight to the robustness of ICWAI career in the country’s accounting arena.”

On the opening up domestic companies to foreign accounting firms, Gopalakrishnan said the government is planning to open up the sector on a consensus basis. “As per WTO norms, the government has to open the country’s market to foreign accounting firms. Already Indian accounting firms have working MoUs with many of their foreign counterparts. The government will be doing it in a consensus manner involving both ICWAI and Institute of Chartered Accountants of India( ICAI),” he said.

While mentioning about the dishing out of fresh cost accounting standards, he said so far 12 new standards were introduced with more fresh standards in the pipeline. “Out of the 12 new standards, four standards have already been incorporated in the central excise audit. Soon we would be implementing other eight standards in all cost accounting practices. I would like to state here that we would soon moving from format based accounting to principle based accounting standards that are inline with the global practices.”

In a bid to create career opportunities in the accounting profession to rural youths, the ICWAI is conducting certified accounting technician course and JK Budhiraja, director of the institute said enrollments have crossed more than 400 students in the southern region alone

https://www.financialexpress.com/news/MNCs-line-up-to-hire-cost-accountants-in-droves/697238/